(An edited version of this article appeared in the August, 1996 issue of Claims Magazine)

Digital Cameras Ronald J Zaremba July 7,1996

The latest "gee whiz" technology that has dropped its price structure down to the level of us peasants is digital photography. Digital cameras have no film but take "pictures" in the usual sense; exposing a sensitive element to light. Instead of light sensitive film, the digital camera uses a light sensitive computer chip that translates each dot or pixel of color to binary digital code. In doing so, the digital camera employs the familiar features of the 35mm camera, lens aperture and shutter speed to control light. The digital camera's "pictures" are then downloaded by cable to the serial port of your desktop PC. Utilizing the software that came with the camera or "off the shelf" software available, the "picture" can then be sent to your color printer for a hard copy. Inherent in this process is the ability to edit and compose the "picture" as an electronic graphic file. With the introduction of very fast desktop PCs and color printers at reasonable prices, this process is now very competitive with film cameras.

So, you say, I just bought the latest in technology with a combination modem, night light and bug zapper. Why do I need a digital camera. You don't, but don't wait too long before you buy one. Let me explain. Claim departments through out the universe are trying to cut the paper flow (and costs) because all three of the major functions of the paper file can be done cheaper and faster on a computer. These three functions are file transfer, access and storage. It is easier to visualize the physical traits of paper files than to visualize the physical traits of electronic files because the electronic file is too small to be seen. Nevertheless, both types of files have physical traits and electronic files are easier and cheaper to move (transfer), access and store. Thus the number one reason to buy a digital camera is to save costs by generating electronic files for your photos instead of the hard copy photographs.

But you say, can't you edit electronic files, thus negating the value of the photos for evidence ? Yes, digital photo files can be edited. A copy of the original digital file for each photo should be saved after downloading and before editing. Document the "chain of evidence" from camera to storage and your problems will be minimal. However, if you intend to use the pictures in court and blow them up to display to the jury or judge, use a 35mm camera. Even the cheapest 35mm will give you better resolution than you can get using the current digital cameras costing as much as $1000. Digital photos will give you good resolution up to a 4" x 5" format. Bigger than that and the resolution quickly deteriorates. In my experience, 99.9% of the photos taken to document claims never go to court so the argument  seems irrelevant.

There is an alternative to digital cameras to generate electronic files for your photographs, the color scanner. You can continue to use your 35mm camera and then scan your photos into your computer to generate electronic graphic files for your photos. This gives you no cost or time saving in replacing your 35mm cameras with a digital camera. To appreciate the difference, let's briefly estimate the costs. For the sake of discussion, we will assume that the actual time to take the photos does not vary between the cameras. For a decent 35mm camera, flash, lens, bag and misc gear, you probably have invested $600. Depreciated over five years, the equipment "costs" $120/year. Most adjusters use 12 exposure film in order to get it out of the camera and processed in time for reports. On an average the film will cost $1.20 per roll and the processing will be about $3.00 a roll. This reduces to $.35/picture.($4.20/12) Time to drop off and pick up the film processing averages a half an hour. At $18.00 per hour and six miles @$.30/mile, the cost per photo for processing time and expense now is $1.25.( $.35 each processing + [$18.00 *.5]/12 time + [6 * $.30]/12 mileage) Now if you add the cost of the equipment, $120/year amortized by 2400 photos/year ($.05 per photo) the total cost of each photo from your 35mm is $1.30. Your 35mm prints cost you $1.30 each to get them in your hand, unmounted and unidentified.

The digital camera, lens, PCMCIA card and color printer will cost you about $2100 up front. The digital camera will require a desktop PC with 8 mg RAM, a 486 processor, a large hard drive and an available port, serial or parallel. Amortized for three years at 2400 photos per year will project the average cost per photo for the equipment at $.30. The additional cost for special paper and color inks is in the range of $.10 to $.20 per photo. The time to print the photos is about ten minutes for three on a page. However, you can send the image files to the print spooler to print and no real additional work by you is required and the computer will be available for other tasks. Using the high side of the material costs, $.20/photo, the total cost of printed digital photos is $.50/photo. If you go totally electronic and do not need to print hard copies of the photos, your photo costs drops below $.25 each.

If you buy a good color scanner, the scanner will cost conservatively $600. Figure twenty minutes to scan the photos into the computer. Amortized over three years at 2400 photos per year for an estimated amortized material costs ($.08), Adding the 35mm film and equipment costs ($1.30), the labor costs($.37), the scanned photos cost $1.75 each. The scanner costs do not compare favorably to the digital camera if the digital camera is used as a replacement of the 35mm camera.

It will take you only a couple of minutes to download the digital camera into your computer. At that point, your cost per unprinted image is less than $.25 compared to $1.30 per photo for 35mm. The next step is to mount and identify the photos. This is where the digital camera and the computer really excels. The work product from the digitized photos and the wordprocessor is much superior to the old hand written photo sheets. Look what Rod Tieken, Tieken Claims Service, Inc of Wichita Falls TX has done. Using WordPerfect for Windows and digital photos, they have set up photo sheets to which they can describe and import the digital photos. They can also include a diagram or layout to better explain the photos. For a nominal cost, Rod will help you set up your photo sheets for your digital photos.

So, if the costs are less and the quality of the product is superior, why delay ? If you manage a claims department, your delay is working against you in the form of higher costs. Yet, digital cameras must be budgeted and worked in with existing equipment needs. If your computers are not big enough or fast enough, digital cameras should be a consideration when you upgrade. If you are an independent adjuster, you find very few of your clients interested yet in using electronic file transfers. The improved photo layout and descriptions can be done by other means. As a function of time, computers and electronics(including digital cameras) get better, faster and cheaper. Delay will get you more camera for the buck when you eventually buy.

Cost and improved quality are the rational reasons to get digital cameras. On an emotional basis, shop and buy digital cameras now! The digital cameras are easy to use. You run little risk of making a fool of yourself. Your appearance and use of a digital camera will bolster your image and make you the center of attention. You will not only appear to be ahead of your competitors, you will be way ahead of them on the learning curve for the use and application of this cost effective tool. Once the digital cameras become common, your edge is gone. Go for it.Bill, this is about 1400 words plus the sidebar. I didn't review the cameras per se as most of it can be covered by the matrix and photo captions. I anticipated you showing a copy of Tiekens photo page with diagram and photos.